Washington, D.C. — The American Economic Liberties Project today urged the Trump administration to follow through on ending duty-free de minimis access for Chinese imports valued under $800 by formally publishing clear importer requirements—most critically, mandating 10-digit HTS codes for all imports. Without strong enforcement, officially ending de minimis for China won’t effectively improve consumer safety, stop fentanyl imports, or level the playing field for U.S. manufacturers and retailers.

“While ending de minimis duty-free treatment for Chinese goods under $800 is a positive step—and one that should be expanded ASAP to cover imports from all countries—it will only succeed if U.S. Customs and Border Protection (CBP) can accurately identify shipments and hold importers accountable,” said Lori Wallach, Director of the Rethink Trade program at the American Economic Liberties Project. “If the administration truly intends to require importers to provide detailed tariff codes for all imports, it must publish official guidance to make that clear—just as it did on April 4 to instruct importers that Formal Entry was required for goods between $250-2500 before it reversed course. Without this requirement, it will be very difficult to collect tariffs accurately, let alone to reduce the flood of low-value packages and conduct meaningful inspections to catch fentanyl and other dangerous imports that were the basis for the end of China de minimis and for some China tariffs.”

The recent suspension of a longstanding customs rule requiring “Formal Entry” for all goods above $250 that are subject to penalty tariffs undercuts the ability to target the riskiest imports for inspection, for instance to find fentanyl-laced fake “generic” pills, and to accurately assess and collect tariffs. Both important actions require key product information for all imports and accountability over importers to stop misrepresentation and fraud.

In a news release last month, DHL bragged about having “contributed to the development of this new regulation.” After legislators and advocates inquired about the administration’s surprising April 28 Federal Register posting that suspended the Formal Entry requirement for imports $250-$2500 from ALL countries facing penalty tariffs, Trump administration officials have said they will require importers to file 10-digit HTS codes (detailed product identifiers linked to tariff rates) online so proper tariffs can be assessed, even if goods get Informal Entry thanks to the waiver. Previously, Informal Entry allowed handwritten forms on which an importer was obliged only to include a general product description, like ‘shirt,” even though there are hundreds of different tariff rates for apparel.

“President Trump also promised to end the de minimis loophole for all nations, like the European Commission decided to do last year,” Wallach added. “Implementing that quickly is vital, including to avoid a flood of Chinese de minimis transshipment, given de minimis has been the only way for Chinese importers to escape US tariffs.”

BACKGROUND: On April 28, the administration issued a Federal Register notice waiving longstanding Customs rules requiring “Formal Entry” for goods valued $250+ subject to ‘penalty’ tariffs, which after Trump’s imposition of April 2 tariffs is the vast majority of goods. Customs regulations have allowed “Informal Entry,” which does not require posting of a bond, use of a Customs Broker or listing of tariffs codes or other data, for goods valued under $2500 except for goods facing penalty tariffs. To make sure importers were following the Formal-Entry-Only rules, the Trump administration issued an April 4 Federal Register notice reiterating the need for importers subject to “Liberation Day” tariffs to list an HTS 99 code. (HTS Chapter 99s refers to the part of the official U.S. tariff list where penalty tariffs are recorded.) CBP issued an “IEEPA FAQ” noting that “Informal entry is not permitted and formal entry is required for any merchandise that exceeds $250 in value and is classified in Subchapters III and IV of Chapter 99 of the HTSUS.” This was then deleted and the waiver issued after express delivery companies escalated their protests, including DHL ending direct-to-consumer deliveries for good sunder $2500.

After the waiver was issued, DHL resumed its consumer service and issued a statement: “DHL Express values the opportunity to have contributed to the development of this new regulation” after “constructive dialogue between DHL and [USG], who demonstrated a strong willingness to understand our operational and technical challenges…” President Trump had previously pulled the plug on what was supposed to be a February 1 end of de minimis tariff evasion and inspection dodging for goods from China after meeting with the CEO of Federal Express.

Learn more about Rethink Trade here.

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.